The First Anniversary Of The KONEX Market, Performance Evaluation And Growth Strategy

A. Performance Evaluation

During the previous year, the KONEX market has successfully achieved its foundation purpose that is to support promising small and medium enterprises (SMEs) and venture companies in their early stage of growth. At the same time, the KONEX has developed itself as a venture capital market with its function for direct corporate financing and capacity to support SMEs and venture companies.

As of June 27, 2014, the number of listed companies and market capitalization in the KONEX is fifty-five (55) and KRW 1.2 trillion, respectively oppose to twenty one (21) and KRW 468.9 million at the opening of the market as the KONEX volume has more than doubled. Last year, twelve (12) companies have raised fund equivalent to KRW 48.6 billion successfully and the volume of direct corporate financing in the KONEX continues to increase.

In addition, as the KRX implements a Swift Listing Transfer scheme from the KONEX to KOSDAQ from June 30, 2014, about ten (10) KONEX-listed companies that meet relevant requirements are expected to move to the KOSDAQ market.

B. Strategy for the KONEX Growth

The KRX will encourage the KONEX listing through cooperation with related organization and publicize success cases of companies that have moved to the KOSDAQ market.

In order to invite more general investors to the KONEX market, the KRX plans to promote deregulation on deposit of discretionary WRAP accounts that invest in the KONEX.

In addition, the trading unit in the KONNEX will be changed to one (1) share from its current one hundred (100) shares as it is the case for the KOSPI and KOSDAQ markets.